Introduction to Financial Statements & Ratio Analysis
A beginner's course on how to effectively read financial statements and ratios to analyze a company's fundamental health.
The goal of this course is to give you a sound knowledge of the three core financial statements of a company i.e. the income statement, the balance sheet and the cash flow statement, along with a clear understanding of the critical financial ratios involved in these statements.
Why should you take this course?
Knowing how to analyze the financials of a company is a must for all the investors who want to become successful in their investing career.
However, we cannot deny the fact that performing financial statement analysis may look very difficult and tedious for the newbies, especially the ones who are not from finance or accounting background. Moreover, because of so many multiple online resources available, it might look like to a maze for the beginners for what to learn and where exactly to start.
And that’s why I created this course.
This course will help you learn to analyze financial statements and ratios the right and easy way.
This course will simplify the complex financial terms and components of financial statements so that anyone can easily understand it. In this course, we will cover many crucial financial ratios that you can need to know in order to assess the financial situation and profitability of a company to make a better investment decision.
The course teaches how to assess profits, balance sheet and cash flow quality using practical examples.
In this course, you will find multiple real-life examples of analysis of financials of Indian companies so that you can get a better understanding of the practical applications of the lessons.
Who is the target audience?
This course is focused on the:
- Newbie investors with little or no financial education- who want to learn to analyse financial statements.
- Beginner investors who are interested in improving their skills of financial statements and ratios to get ahead in their investing career.
- Business professionals who want to enrich their knowledge of finance or looking to manage their own stock portfolio.
Quick Note: This course is not targeted to make you an accountant or CFA (trust me, it takes over hundreds of hours of study to get those degrees). This is a crash course to give you enough knowledge needed so that you can assess the financial health of any company by reading their financials. We are more interested to build your investing confidence and knowledge, rather than teaching book-keeping and accountancy.
Requirements to take this course:
Besides your passion to learn, these are absolute zero requirements to take this course.
- No prior knowledge of finance/accounting is assumed or needed.
- No Fundamental or Technical Knowledge required to take this course!
- Passion and Enthusiasm for Learning
Who should ‘NOT’ take this course?
This course is aimed at the beginners and is not suitable for advanced investors or accountants who have a good experience of reading financial statements.
What you’ll learn in this course?
This course is divided into five modules for the ease of grasping the concepts in step-wise flow.
Module 1: Introduction to financial statements and ratios
In this module, you’ll learn the basics of the financial statements and ratios. I will introduce you to the three core financial statements, financial ratios, their importance, ratio analysis strategies and the categories of financial ratios.
Module 2: Income Statement
This module covers all about the income statement of a company. We’ll start with what is income statement, it’s basic structure and components. Then, you’ll understand how to analyze the profitability of a company along the profit margins.
Next, you’ll learn how to quickly analyze the income statement of a company if you’ve just two minutes. After that, we’ll perform a detailed analysis of the same income statement of a public Indian company. Finally, we’ll discuss how to use common size analysis to simplify financial statements.
Module 3: Balance sheet
The third module focuses on the balance sheet of a company. Here, first we’ll start with the basic format & components. Then, we’ll discuss how to read the balance sheet of a company. Next, we’ll perform a detailed analysis of the cash & cash equivalents, inventories, account receivables, payables and debts.
We’ll also discuss various financial ratios like current ratio, debt to equity ratio, receivables to current ratio, inventory to current asset ratio etc involved in each of these components analysis to simplify our study. Finally, we’ll discuss how to use return on equity to analyze the profitability of a company.
Module 4: Cash flow statement
This is the final module on the core financial statement of a company. Here, we’ll discuss the cash-flow statement of a company in detail. Here, you'll learn how to read the cash flow statement of a company by focusing on three of its important activities i.e. operations, investing and financing.
Finally, we’ll learn what is free cash flow, how to calculate and analyze it using the cash flow statement of a company.
Module 5: Bonus –Additional financial ratios
In this bonus module, we’ll discuss a few additional must know financial ratio for analyzing a company’s financials. The first video will focus on the most frequently used valuation ratio i.e. Price to earnings ratio and price to book value ratio. Next, you’ll also learn five additional must know ratios. Finally, there is also a separate video on how to analyze the dividends of a company.
Overall, by the end of this course, you’ll get sufficient knowledge and confidence to analyze the financial statements of any company that you prefer.
What you’ll get along with this course?
After enrolling in this course, you'll get:
- +2 hours on-demand videos on financial statements and ratios.
- Downloadable Pdfs and spreadsheets for financial statement and ratio analysis.
- Lifetime access to this course, without any limits!
This course will keep updating frequently with additional videos and case studies, and of course, all future lessons and updates are absolutely FREE if you enroll today!!
Hi, I am Kritesh, an NSE Certified Fundamental Analyst. I am an equity investor & electrical engineer by qualification from National Institute of Technology (NIT), Warangal.
I have a passion for stock market. My blog Trade Brains, a stock market blog is dedicated to spread education towards investing in stocks for long term. It gets thousands of viewers per day from people interested to learn and invest on their own. I have spent my last +4 years learning, investing and educating people about the share market.
I strongly believe that anyone can earn by investing in stock market if he/she is willing to spend some time & energy. And that's why I created this course. I hope to see you inside this course soon. Happy Investing.
Connect with me on linkedin.
Frequently Asked Questions
A successful investor cannot avoid reading the financial statements of a company before investing.
Now, its's your chance to get confident with reading the financial reports of your favourite companies. Enroll in the course now and begin your financial journey today!